ADB Reaffirms Long-Term Partnership with FSM on Resilience and Growth

The Asian Development Bank (ADB) has pledged to deepen its partnership with the Federated States of Micronesia (FSM), reaffirming long-term support for resilient infrastructure, climate adaptation, and inclusive growth in the Pacific island nation. ADB President Masato Kanda met with FSM President Wesley Simina to discuss shared priorities and areas for expanded cooperation, highlighting ADB’s readiness to align with the country’s new 20-year National Strategic Development Plan.

Strengthening Cooperation with a Valued Partner

“The Federated States of Micronesia is a valued partner of ADB in the Pacific,” said Kanda. “I look forward to building on our cooperation by working together to address the country’s unique vulnerabilities and strengthen its resilience.”

FSM’s challenges are well recognized: its geographic dispersion, small population base, and exposure to climate and economic shocks make the country particularly vulnerable. Both leaders underscored the urgency of investing in climate-resilient infrastructure, disaster preparedness, and inclusive development that benefits all communities across FSM’s four states.

Aligning with FSM’s National Development Priorities

President Simina emphasized the importance of FSM’s 20-year National Strategic Development Plan, which provides a framework for building a more resilient and diversified economy. ADB expressed strong support for implementing the accompanying 10-year Infrastructure Development Plan, which sets out investment needs of approximately $670 million for roads, ports, airports, renewable energy, and essential services.

ADB’s role will be to mobilize resources, provide technical expertise, and ensure projects are designed to withstand the dual pressures of climate change and external economic volatility.

A Track Record of Support in Key Sectors

Since FSM joined the ADB in 1990, the Bank has provided more than $267 million in assistance across critical sectors:

• Energy and Transport: ADB helped finance the Yap Renewable Energy Development Project, which reduced reliance on imported diesel for electricity generation by around 30%.

• Utilities: The Bank supported upgrades to the Chuuk Public Utility Corporation, now recognized as one of the best-performing utilities in the Pacific region.

• Water, Sanitation, and Education: ADB-backed projects have expanded access to clean water, improved sanitation services, and strengthened education systems, laying the foundation for long-term human capital development.

These investments, officials said, illustrate how targeted interventions can reduce costs, enhance resilience, and improve livelihoods in small island economies.

Looking Ahead: Climate Resilience and Inclusive Growth

ADB President Kanda highlighted the broader importance of FSM’s partnership with the Bank in addressing regional challenges such as:

• Climate change adaptation and protection against rising sea levels.

• Infrastructure resilience to safeguard transport and energy networks.

• Inclusive economic growth, ensuring that development benefits remote and vulnerable communities.

President Simina expressed appreciation for ADB’s continued support and stressed that FSM’s future development hinges on investments that balance economic sustainability with environmental stewardship.

A Strategic Pacific Partnership

The renewed commitment builds on ADB’s broader strategy for the Pacific, which emphasizes resilience, connectivity, and inclusive development. FSM’s long-term development plans, coupled with ADB’s financial and technical assistance, are expected to create a stronger foundation for sustainable growth in one of the Pacific’s most geographically dispersed nations.

As FSM looks ahead to implementing its $670 million infrastructure program, the Bank’s role as a trusted partner will be critical in mobilizing financing, strengthening governance, and ensuring projects deliver tangible benefits to the country’s people.